[The Malaysian Reserve] Matrix Concepts 1H15 net profit up 79.4%

Property developer Matrix Concepts Holdings Bhd posted a 79.4% jump in net profit to RM145.3 million for the firsthalf (1H) ended June 30, 2015, from RM81 million a year earlier on higher sales of industrial and residential properties.

The company has the agility to weather the potential slowdown and overall dampened sentiment in the property sector.

“The case in point is our recent launch of Hijayu 3B project at end-May 2015, comprising 333 units of double-storey terrace homes, which saw approximately 40% take-up within a short span of one month. This indicates our success in catering to the demand for affordable homes in Negri Sembilan and Greater Klang Valley,” he said in a statement yesterday.

Of the total 1H revenue, sales of residential and commercial properties contributed RM337.6 million, comparing favourably to RM227.4 million previously, while sales of industrial properties and land stood at RM95 million, up from RM71 million earlier.

Its investment properties, comprising Matrix Global Schools and d’Tempat Country Club, contributed the balance RM5.5 million of the 1H group revenue, he added.

For the second-quarter ended June 20, 2015, Matrix Concepts, however, saw its net profit declined 29.7% to RM29.8 million from RM42.4 million a year before.

Turnover was at RM120.4 million, 26.4% lower than RM163.7 million previously due to decreased revenue recognition as a result of acceleration in project progress and completion of industrial property sales pre-GST.

Matrix Concepts’ total unbilled sales from ongoing projects amounted to RM540 million as at June 30, 2015, which is expected to be recognised until 2018.

“We are positive of riding out the current sentiment, given our long-standing experience across many property cycles. In this regard, we would strive to strike a balance in new launches comprising affordable and higher-premium properties, in sync with market requirements.

Matrix Concepts has declared a second interim single-tier dividend of 3.5 sen per share in respect of the financial year ending Dec 31, 2015, translating into a payout of about RM18.9 million, which will be paid on Oct 9.

The dividend will be paid to shareholders on Oct 9, 2015, based on the Record of Depositors on Sept 25, 2015.